Federal Student Aid: Performance-Based Organization Review

WASHINGTON, D.C.—On Wednesday, November 18, the Subcommittee on Higher Education and Workforce Training, chaired by Rep. Virginia Foxx (R-NC), and the Oversight and Government Reform Subcommittee on Government Operations, chaired by Rep. Mark Meadows (R-NC), will hold a joint hearing titled, “Federal Student Aid: Performance-Based Organization Review.” The hearing will take place at 9:00 a.m. in room 2154 of the Rayburn House Office Building.

The Department of Education’s Office of Federal Student Aid (FSA) administers all federal loan, grant, and work-study programs, making the agency one of the largest consumer lenders in the country. In addition to overseeing the $31 billion Pell Grant Program, FSA manages $1.2 trillion in outstanding student loans and serves approximately 40 million borrowers. The agency also supervises private loan servicers, collection agencies, and colleges and universities to ensure compliance with the federal laws, regulations, and policies.

Reports from the Government Accountability Office and the Department of Education’s Office of Inspector General have raised concerns about the ability of FSA to effectively and efficiently administer federal financial aid programs. Recent reviews of FSA revealed a number of challenges, including a lack of communication with borrowers and institutions and difficulty delivering the appropriate amount of aid to eligible students on time.

Wednesday’s hearing will provide members an opportunity to learn from independent government watchdogs and student aid administrators about the challenges at FSA, as well as discuss opportunities to improve the agency to better serve students, families, and taxpayers. To learn more about the hearing, visit http://edworkforce.house.gov/hearings or https://oversight.house.gov/hearing/federal-student-aid-performance-based-organization-review/.